Beijing Strikes Back Banning Critical Metal Exports to US
Plus: Commodity Monthly Analysis
Contents:
Beijing Strikes Back
Key Implications: Why hasn’t anyone banned Silver?
BOA Commodity Analysis
Over 6M, our model is bullish aluminum, copper, nickel The BCOM TR index has posted 4.03% returns YTD, with Coffee, Silver and Copper outperforming and Natural Gas, Corn, Soybeans and Wheat lagging index returns. In relative terms over a one month holding horizon, we have an overweight stance on soybean meal, gasoil, gold and silver.
Continues at bottom after title piece
Beijing Strikes Back: China’s Retaliatory Move on US Export Controls
China Bans Key Mineral Exports to the US
(GoldFix News) As reported by several Legacy media agencies: In a sharp response to new export restrictions imposed by Washington, China has banned shipments of several critical minerals and metals to the US. These materials, essential for semiconductor manufacturing and military applications, include gallium, germanium, antimony, and superhard materials. Beijing also announced tighter export controls on graphite, further escalating the ongoing trade and technology conflict.
China’s commerce ministry accused the US of “weaponizing trade and technology” under the guise of national security. The new measures, effective immediately, aim to safeguard China’s national interests. This development comes in direct retaliation to US efforts to curb China’s progress in developing artificial intelligence (AI) capabilities for military use.
Chinese Trade Associations Call for Reduced US Chip Purchases
Alongside the export ban, China’s trade associations representing the semiconductor, communications, auto, and internet industries urged their members to reduce reliance on American chips. The China Semiconductor Industry Association emphasized that US chip products were “no longer safe or reliable” and advised caution in their procurement.
Impact on Key Industries and Supply Chains
The restricted minerals and metals play a pivotal role in producing semiconductors, batteries, and military hardware, including armor-piercing ammunition. Prices for germanium and gallium in Europe have already doubled due to earlier Chinese curbs, signaling the potential for significant economic disruption.
